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Thread: Looking to move into acreage work - what is the market like? How to charge?

  1. #31
    Senior Member conrad's Avatar
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    Jul 2008
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    Wavell Heights Qld
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    Default Re: Looking to move into acreage work - what is the market like? How to charge?

    Hey Macka, I have nothing against working smarter - all for it! I have geared everything towards that, pulling up to a job I can be mowing within a minute whether it's ride on or push mower, and packed up just as quick when I'm done. Everyone has to work out for themselves what they want out of their business. Money is one thing, but I'm sure that I'm not the only one who would rather spend time on customers who appreciate the work I do and happily pay my asking rate - the job satisfaction is immense when you are fully booked with these types of customers, makes the work enjoyable and motivates me to keep pushing my quality of work even higher. Heck, I have customers that have volunteered to pay more! One lady had a $60 mow, a while back she increased it to $70 one service and has been paying that ever since!

    Being so busy that I have subbies with me most days of the week, thinking about putting on a full-time employee - it's hard to continue growing your business when you accept work at lower rates, you only have so many hours in a day and if you're giving preference to these type of jobs it means you don't have the time to take on higher paying work. Had the situation recently where one lady got a mower for Xmas, no more lawn service required but I still do the $30 job next door. If I was taking that on as a new job now it would have a minimum fee of $50. Majority of my work is fairly contained within a few suburbs of each other, maybe that's where I should keep my focus. I understand that acreage is slightly different with increased travel time etc., but again you come back to the question of whether it's worth the small bit of extra travel & expense for that full fee job, or do the reduced rate job next door which is convenient because you're already there, but also stops you from taking on new full fee jobs...

    Everyones situation is different, still is a good conversation to have as it helps to bring your focus back to business processes, streamlining, efficiency etc.

  2. #32
    Member Macka's Avatar
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    Jul 2014
    Location
    SA
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    534

    Default Re: Looking to move into acreage work - what is the market like? How to charge?

    Hi conrad, Jobs are easier to to as a group, sets or 5 to 10 units is where you really see the big benefits of a much bigger return for a lot less effort and time.

    acreage is similar, travel and loading gear cost money, the less your expenses the less you can charge.

    I suppose the real thing is profit margin not the $30 - $40 or $100 charged. Its Not the hourly rate your taking that's important.

    If you know all your expenses for everything, the cost of every job and the profit your left with, then the charge out rate doesn't come into it at all. you focus on the profit margin per hour. Profit per hour...

    3 x $30 Lawns together 70min all up, Expenses: Business and small equipment costs $12 per hour, 5min travel time $2 fuel cost
    $90 gross, 75min Time. $17 Expenses. Profit $73. $58.40 per hour profit

    3 x $40 Lawns 30min each, Expenses: Other Business and small equipment costs $12 per hour, 15min travel time $7 fuel cost
    $120 gross, 105min Time, $28 expenses, Profit $92. Profit $52.57 per hour

    Ride On, 1 hour job $100 Expenses: Ride On Cost to run $33.50 per hour, Other Business and small equipment costs $12 per hour, 20min travel time $7 extra fuel cost,
    $100 Gross, 80min time, $56.50 expenses. Profit $43.50. Profit $ 32.63 per hour

  3. #33
    Senior Member sterlo's Avatar
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    Jul 2011
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    South East Melbourne
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    Default Re: Looking to move into acreage work - what is the market like? How to charge?

    Quote Originally Posted by GardeningSolutions View Post
    I've heard this said by some one else but would love to say it to a Beer Bob, " If i wanted to go broke, I'd rather sit at home than work for F all.
    I have said that :-)
    I spend most of my money on beer and horses, I just waste the rest....


    http://www.sterlinggardenservices.com/

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